The European Commission has cleared the merger of Nestlé S.A. and Novartis' Medical Nutrition business (NMN) following a first phase investigation. Both parties are active in the enteral nutrition market. The Commission’s investigation found that the transaction posed competition issues in France, where the two main suppliers would be merging, and in Spain, where the leading position of NMN would be strengthened. In addition, the Commission found that the importance of established brands created significant barriers to entry and expansion. The transaction was approved following commitments to divest the healthcare nutrition business of NMN in France and that of Nestlé in Spain